New Single-Family Rentals Reach All-Time High, With Another 45,000 on the Way
Build-to-rent (BTR) is having a moment. Riding alongside the rise of hybrid work and millennials coming of home buying age but finding the task rather challenging, we’re witnessing the sector’s historical peak.
Nearly 27,500 BTR homes were completed in 2023, marking an all-time high. This is 75% more than the year prior and triple of what was reported in 2021.
According to RentCafe, This momentum has led to more than 45,400 build-to-rent houses now under construction that are expected to welcome renters in the next couple of years. While the bulk of these should open their doors in 2025, we anticipate a moderation of this fast-paced construction rush.
So, which areas are seeing the largest numbers of new build-to-rent homes? The Phoenix metro area led the way by far with more than 4,000 units completed in 2023, followed by Dallas and Atlanta. Then, Austin, TX, and Charlotte, NC, rounded out the top five metro areas with the highest numbers of houses for rent that opened their doors last year.
However, this adaptation of the American Dream is expanding beyond the traditional Southwestern markets and into Florida and even the Bay Area. In fact, nearly 8,300 rental homes are currently underway throughout Florida, while another 2,400 are under construction in California.
